Community Pool funding proposal for a Fetch.ai native NFT marketplace

Fetch.AI NFT Marketplace community funding

Introduction

We are proposing the creation of a NFT (Non Fungible Token) marketplace on the Fetch.ai blockchain, with a focus on AI-generated content and the underlying models.

Fetch.ai's emphasis on Machine Learning and Artificial Intelligence makes it an ideal platform for our marketplace, which aims to leverage the growth potential in both the NFT market and the AI-generated market.

Part of the fees generated by the project will be shared back with the community, making it a win-win for all involved.

Join us in this exciting venture as we harness the power of AI to revolutionize the NFT space!

Product Overview

We propose building a NFT marketplace that takes into account the specific AI focus of Fetch.ai to maximize value from AI-related content, model training and niche expertise.

We believe an NFT marketplace is an essential building block of a full featured blockchain. This will increase the Fetch.ai attractiveness for prospective projects and bring attention from new types of investors.

We hope to support not only AI-generated content, but also provide a service that encompasses all areas of the AI process: buying and selling of customized models, monetizing access to quality prompts and trading of generated content .

We propose building a Fetch-native NFT marketplace with the following main features:

Full support for traditional NFTs
Focus on AI-content
Fiat on-ramp
Ease of interaction

After release of our marketplace, we plan on exploring features such as fractionalized NFTs, as well as a cosmos compatible version of the ERC-4907 proposal for rentable NFTs and a referral system.

NFTs and AI: Massive Opportunities

We believe NFTs are one of the most popular use cases for blockchains.

They represent:

Hundreds of projects on dozens of chains
A large part of blockchain activity (20%+ of gas usage on Ethereum)
An exponentially growing market, with billions in value already
Fundraising opportunities, by providing a simpler alternative to emitting tokens

NFTs are a fast growing market, with a projected increase of 34% per year over the next decade, with many markets still to be tokenized.

The NFT market is projected to reach a $250 billion valuation by 2028, according to Research And Markets

Similarly, recent months have seen the release of several ground-breaking models for AI-generated content, especially for the visual arts. Several of these high-quality models have open source implementations, such as Stable Diffusion.

This newest breed of models provides:

Great quality of renders
Controllable generation through prompts and parameter changes
Lightweight execution, with models being run on consumer-grade hardware

Two renders generated by LeonardoAI & the Fidenza Generaive Algorithm

Two renders generated by LeonardoAI & Generative Algorithm Fidenza by Tyler Hobbs

These are exciting times, and there is bound to be an impact on the arts markets by providing a simple, convenient and efficient way to create a trove of new, high-quality, personalized content.

It is no surprise then that the value of the Generative AI Market is also predicted to increase exponentially.

Projections for the Generative AI market envision a $100B market by 2030, according to Acumen Research

Both the NFTs and Generative AI show a clear trend up, and we believe Fetch.ai has its part to play and can benefit greatly from it.

Fetch.ai is building the decentralized infrastructure AI needs. Providing an NFT marketplace to distribute this AI-generated content is the logical next step.

But we can go even further in providing users with what they need. Here are some of the points we’ll strive to include in our marketplace:

Enable AI artists to sell their generated content directly
Providing access to customized models
Detailed prompt engineering

Reaching a desired style is tricky; people have been adjusting available models by providing them with additional training or mixing weights between models. We want to enable Modellers to provide access to their customized models and be rewarded for their efforts.

Similarly, generative models based on textual inputs (also called “Prompts”) can be finicky. Adept prompters could be remunerated for their expertise in optimizing model outputs.

We strongly believe that this proposal plays well into the strengths of the Fetch.ai ecosystem and its specificity and we’re committed to both making this project a success and sharing back with the ecosystem:

A portion of the fees generated by the marketplace will go towards funding the community pool, helping all of us fund innovative projects.
A marketplace is a dynamic part of the ecosystem. We expect usage of the ecosystem to drive usage of the Fetch.ai blockchain, which means higher remuneration for validators and stakers alike.

Proposal

We propose building a NFT marketplace that takes into account the specific AI focus of Fetch.ai to maximize value from AI-generated content.

The marketplace will bring support for NFTs following the standard CW-721 contract (standard NFTs), CW-2981 (NFTs with royalties) and NFTs with on-chain metadata.

Collections that wish for it will be mintable directly on the marketplace.

We also plan on providing useful analytics. This includes:

Rarity for both individual and collections of NFTs
Historical transaction data
New collection minting tracking

The project will be split into 3 separate proposals, each with its own timeline and set of deliverables which helps keep the team accountable for ongoing development progress by giving the community a recourse.

We also plan to implement a fee-sharing scheme with the community: 25% of fees generated by the marketplace will be sent back to the community fund.

Proposed fee repartition between the Marketplace and the Community Pool
relative to the total amount spent

As an illustration, when selling an NFT for 100 USDC this means:

95 USDC goes to the seller
1.25 USDC for the community pool
3.75 USDC for the team

Overall the Fetch.ai community will gain access to:

Publicly accessible NFT marketplace website
Publicly accessible API
Open Source NFT marketplace smart contract
Publicly available Javascript libraries, including a typing library and an easily consumable client.
Cosmpy-powered library

In particular, these libraries will enable other projects to build upon the project, including marketplace interaction through AEAs (Fetch.ai’s Autonomous Economic Agents) or other user-developed bots and applications.

Timeline & Funding

We split the project into 3 milestones and expect complete delivery to take up to 6 months.

Upon successful approval of the initial funding proposal, the team will get started on development work right away. Here’s a breakdown of the proposed milestones and deliverables for each of them:

Initial Funding

Upgradable Smart Contract development
UI design and implementation
API design and development
IPFS support
Support for royalties

After Testnet release - First Milestone

Support minting launching collections
Ongoing feedback integration
Cosmwasm focused indexer development
Cosmpy-powered library for AEA and micro-agents integration

Marketplace will launch with built-in support for the Fetch token, the Mobix token and USDC.

After Mainnet release - Second Milestone

Add support for NFT rarity
Add support for historical trades
Open Source smart contracts

Funding will also go toward the infrastructure costs the marketplace will have to shoulder.

These include a dedicated public API, multiple servers as well as an IPFS gateway for efficient storage and access of NFTs over the long term.

Milestone	Target Date	Funding Amount
Project Start	Q2 2023	$30,000
Milestone 1	Late Q2 2023	$20,000
Milestone 2	Q3 2023	$10,000

Total		$60,000

As funding through the community pool is done through the FET token, each proposal’s amount will be determined using the Binance market price of the FET/USDT spot trading pair just before submitting the individual proposals.

After each proposal, the received FET tokens will be sold gradually in order to avoid any significant market impact.

About the Team

AzoyaLabs is the team behind FetchStation, the all-inclusive hub for the Fetch.ai blockchain, as well as the Fetch Name Service which offers domain names for convenient address-resolving and web3 identity building.

AzoyaLabs has also been a preferred partner for Fetch.ai and has been collaborating on the development of the Subquery indexer implementation for the Fetch blockchain.

Before joining the Fetch community, we developed the only Anchor liquidation dashboard on Terra Classic supporting batched order management, while our professional history also includes contractual work on EVM-based, Solana and Near blockchains.

The AzoyaLabs team is comprised of:

Max: Full stack developer and project lead. He’s worked on bots, indexers, APIs and no-code interactive dashboards for the Cosmos ecosystem. His in-depth knowledge of Cosmos and general web programming is the glue that puts together the cross-platform experience we want to provide.
Pbr: An experienced project manager that has taken the lead in many projects that have spanned multiple years, ensuring projects have stayed on budget and met sensible deadlines. Pbr is also a multi-chain web3 enthusiast and has been one for the past few years.
Wally: Experienced Smart Contract developer. He built the Fetch Name Service and his expertise in CosmWasm contracts is key to our project. His systematic approach to contract testing helps provide the safe environment users deserve.

FAQ

What does the Javascript Library entail?

Typing Library, CosmWasm-Stargate query and signing clients as well as a react-query implementation, all open-sourced, with a permissive license and easily accessible as a npm dependency.

This will enable outside developers to easily work on integrations.

I’ve generated some AI art. I'd like to put it on sale as part of an NFT collection, is there something you can do even before launching the marketplace?

Sure, contact us on:

Why share your fees with the community pool instead of stakers, like what Stargaze does?

To help fund new projects. The increased network and gas usage will already result in additional rewards for stakers.

Fees paid in USDC will also help stabilize the value of Community Pool, which will be less dependent on the fluctuating market value of the FET token